Mortgage Rates continue their steady climb up. According to Freddie Mac the average rate on a 30-year fixed mortgage loan is 4.46%. This is up over a half a percent from last week when the average rate stood at 3.93%.
According to USA Today this represents the largest rise in interest rates in one week since 1987. Some economists say that even though the rates have risen sharply they are unlikely to hurt home sales. They point to the fact that rates are still very low. These economists argue that because home prices are still very low the rise in rates won't have much of an impact in the overall market.
But these same economists also acknowledge that this will be a tough pill to swallow for some homebuyers. Those looking for $200,000 mortgage last week could see an increase in their payments by as much as a $100 a month resulting in thousands of dollars of extra interest over the life of the loan.